State pension triple lock blamed for 'growing tax burden on young people' as Labour told to axe payment hikes

Thanks to the policy, the full, new state pension will rise by £574.60 in April this year, which means recipients of the Department for Work and Pensions (DWP) benefit will claim £12,547.60.

Last year, the Office for Budget Responsibility (OBR) forecast the triple lock would cost the taxpayer three times more than initially projected by 2030, with the total bill set to reach £15.5billion by the end of the decade.

To balance the books, economists and analysts have suggested the triple lock should be examined as part of the ongoing review being conducted into the state pension age.

Speaking to The i Paper, Quilter's head of retirement policy Jon Greer shared: "The triple lock is becoming increasingly expensive as the population ages and the tax burden on working-age people grows.

"Its volatility has also become more apparent in recent years, with temporary spikes in inflation and wage growth triggering unusually large increases in the state pension.

"These events pull the policy’s shortcomings sharply into focus. Many pensioners are still feeling the effects of the cost of living crisis, and protecting their incomes resonates with voters.

"But there is a growing debate about fairness. A system designed to protect against poverty now benefits all pensioners equally, regardless of income. Meanwhile, younger generations face rising taxes, weaker job security, and less generous private pensions.

"Labour’s planned review of the pensions and retirement savings framework offers a crucial opportunity to look again at whether the triple lock remains fit for purpose.

"One potential reform is to link increases solely to earnings, helping align pension growth with the wider economy and creating a more predictable and affordable system."

Among the think tanks that have supported the proposal to link state pension payment increases to earnings growth are the Institute of Fiscal Studies (IFS) and the Intergenerational Foundation.

Despite this recommendation, Mr Greer noted any reform to the state pension status quo "must be handled carefully" and reminded the Government to examine "the long-term pressures the triple lock presents".

An anonymous Government minister told The i Paper that opinions on the triple lock's future were split between members of the Labour Parliamentary Party, which could make reform difficult.

They said: "While someone needs to reform the triple lock, I haven’t detected that that someone is this Government, to be honest. We said we wouldn’t in the manifesto, there are still fingers burned from [the cuts to] Winter Fuel Payments."

Paul Ovenden, who served as Prime Minister Keir Starmer's director of strategy for Number 10 Downing Street from July 2024 to September 2025, cited pension policy as being an example of the "stakeholder stake".

Mr Ovenden suggested that the levers of power in Government were being pulled on behalf of interest rate groups, such as the pensioner lobby, instead of the greater good.

Ahead of last year's Budget statement, Chancellor Rachel Reeves promised to keep the triple lock in place until at least the end of this Parliament, which will end in 2029.

She said: "Whether it's our commitment to the triple lock or to rebuilding our NHS to cut waiting lists, we're supporting pensioners to give them the security in retirement they deserve.

"At the Budget this week, I will set out how we will take the fair choices to deliver on the country's priorities to cut NHS waiting lists, cut national debt, and cut the cost of living."